I signed up for Herbalife as a distributor in June 2015.
On September 16th, I received a generic email from ****** ****** in Herbalife Compliance notifying me my membership account as put on hold, and they were demanding my retail receipts including a written explanation about my retail sales for Herbalife product for a period of July 2015, August 2015, and September 2015.
I complied with the request immediately, and provided ****** ****** my retail receipts (56 pages of hand-written retail receipts, no small endeavor) on September 25th. Garcia confirmed receiving the receipts, and told me I would receive contact after the file was reviewed with management.
On September 30th once and October 9th two times (over a week later) I sent emails to Garcia asking about what was going on, and asking if there was anything else I can do to help with the situation. Garcia did not respond to any of these emails at all.
In between this time, I then received a certified letter in the mail from a new person in Herbalife Compliance named Cesia M. making a ridiculous claim that they had "not received any contact from me", and were going to terminate my Herbalife account on October 16th.
I then attempted to contact Cesia by phone numerous times:
1:16pm (message left)
2:45pm (message left)
I also sent several emails to Garcia again just pointing out the disconnect in communication, since I already provided my written response, and receipts. Once again, no response.
Eventually, I received a generic voicemail on October 13th from Cesia asking once again for the written response, and receipts which I already previously provided. Later that same day, Cesia leaves a second voicemail making a claim that the receipts did not cover exactly every single retail sale I made during that time frame.
Herbalife has a policy called the 70% rule pertaining to customer sales. It states:
Rule 18-B - 10 Retail Customers Rule
A Distributor must personally make sales to at least ten (10) separate retail customers in a given Volume Month to qualify for and receive Royalty Overrides, Production Bonuses, and other bonuses paid by Herbalife. For the purpose of fulfilling the certification requirements of this Rule, a Distributor may count any or all of the following each Volume Month.
* If the Distributor fails to timely certify to Herbalife that they have sold to at least ten (10) retail customers in a given Volume Month, Royalty Overrides, Production Bonuses, and other bonuses will not be paid to the Distributor.
The 56 pages of retail receipts I sent more than qualify in that policy for my volume, and to make the claim that "some or several receipts are missing" to justify a shutdown of the account is absolutely beyond outrageous, and a semantic just to do whatever they want regardless.The policy requires that a distributor account for 70% of his/her volume through retail sales receipts, while the other 30% can be used for personal use/gifts/family/etc.
This issue was handled absolutely terribly. The communication was extremely poor or non-existent.
This was a good source of part-time income for me, and has now cost me a several thousand dollars a month in my sales because of the way this issue was handled including rightfully angering my customers whose orders could not be taken. I worked hard with my family retailing these products, and was within the policy. It is at least very clear that I am legitimately retailing products, and none of my customers have even been contacted by Herbalife. Herbalife says they have a right to contact your customers, and I would by more than happy for them to do so.
My account should be reinstated in full, as I have cooperated beyond what any reasonable person would have done, and provided all documentation requested.
Contact Name and Title: ***** ********
Contact Phone: XXX-XXX-XXXX,XXXXX
Contact Email: ********@herbalife.com
Thank you for the opportunity to respond.
We are currently in the process of reviewing *****'s account and have been in constant communication with ***** to provide status updates. Until our reivew has been finalized, the account will need to remain on hold. We hope to have this matter resolved in the near future.
If ***** has any quesitios or concerns, she may contact David Renteria at XXX-XXX-XXXX extension XXXXX.
(The consumer indicated he/she DID NOT accept the response from the business.)
This reply still completely avoids the basic issues of this case, which are unresolved.
I have never heard from this new person ***** ********* nor has he attempted to ever contact me since this issue started September 16th. To post a generic reply claiming that Herbalife has been in "constant communication" with me simply has not happened. My "questions and concerns" were already repeatedly asked even in writing with no answers. ***** should contact me as the complainant instead of just providing a face value reply that just attempts to paint Herbalife as being responsive to this issue now that it is in the public domain, when they are pretty far from that.
I provided my call logs previously with dates, times, and specific names of Herbalife employees that ignored almost all of my emails, calls, and phone messages except for now exactly 1 recent call on November 2nd, where I have spoken to "Cesia M" in Herbalife Compliance. "Constant communication" is a stretch.
This case started from Herbalife demanding I provide 3 months of sales receipts to them verifying I was, in fact, making sales to customers. I accept that this is within their rights to do as a company.
56 pages of hand written receipts were sent to Herbalife. In a phone message dated October 13th, Herbalife Compliance Employee Cesia M. first claimed the receipts did not cover "every single sale" I made, so they were not going to accept them.
My response to this claim, was to re-cite Herbalife's "70% rule" and "10 Customer Rule" which were clearly met by those receipts. These are the same rules being cited to me for " violation".
Herbalife falls silent on the issue , but then decides to send me a certified letter dated October 29th changing the story now claiming that they have my receipts, but will not accept them based on a single issue: The receipts "lack a phone number" for the customer. (Mistake)
The receipts I sent Herbalife provide a complete full name (first and last) including a personal email address belonging to that specific customer. The receipts also detail the quantities of the product purchased, the name of the product, and the date of the sale. Pretty detailed information for a receipt.
This has now where the issue has unfolded in some ridiculous semantics battle of Herbalife policy:
The vast majority of my customers are absolutely opposed to giving ANY of their personal information to a third party at all. This has become an issue so many times to where I have had people confront me about asking for this information, or seem uncomfortable. It is also uncomfortable in many ways for me, and I am not going to argue with a customer who has a pretty real privacy concern about giving this information out.
Any reasonable person could make contact with these people to verify any sales including asking for any other personal information if that truly is the issue.
No contact with any of my customers has occurred still to this day for reasons Herbalife refuses to answer, which is another glaring issue in this case.
Herbalife (or at least Herbalife Compliance) seem to completely lack any common sense whatsoever with the issue about privacy. Anyone I have spoken to about this seems to understand right away about being cautious about your personal information getting to some random third party or company.
There is also the glaring issue of legality when it comes to somehow "mandating" voluntary, personal information from a customer. You cannot force people to give their personal information, and penalize your distributor because that customer says no, or only wants to provide their preferred method of communication or limited contact information. Apparently, Herbalife can because that is what they are doing in this case. My account was put on "hold" since September 16th without even attempting to resolve the issue beforehand with reason. This action alone has financial repercussions to me.
Ironically, Herbalife themselves communicate "official information" through email, yet they refuse to acknowledge the validity of the email and a customers first and last name as being valid contact information? It is just a matter of picking another reason to deny this account reinstatement at this point.
To make this response shorter, I have forwarded this issue to exactly 2 local law firms for a real, honest cursory review because my parents and family have been in this type of business in the 6 annual figure range at the top of their pay plan full-time for over 20 years. Both law firms, one of which includes a 20+ year attorney with business issues like this feel there is a valid case.
The problem? The super high costs involved. I can make a couple thousand dollars about every 2 months retailing products almost on a full-time basis. It is no walk in the park. It takes a great deal of time to meet these people, talk about their product needs, deliver the product, and follow up with their orders.
Like many things, it will cost a great deal of money to prove the issue, for a pretty small return. My family is willing to pay the legal fees because these companies treat their distributors like garbage until they run into someone that is not willing to get bullied around especially in a situation like this, where we have pretty good documentation to prove the issue at least to a reasonable person or group of people. It still is an absolute hassle, and it was my sincere hope to reach a fair resolution without through all of this nonsense.
Potential distributors, customers, and anyone else can read this through the lines of this issue, and draw your own conclusion.
Final Business Response
At this time, our position on this matter remains the same. Until our review of the membership is complete, the account will remain on hold.
If Ms. **** has any questions, she can contact ***** ****** or ***** ******** at XXX-XXX-XXXX.
Final Consumer Response
To Whom This May Concern:
This issue has not been resolved. I still have received no response from Herbalife.
Herbalife is stalling plain and simple. To describe the unprofessionalism along with the sheer terrible service provided by this Compliance Department would be quite an understatement.
Herbalife decided to contact some of my customers, since the last update because many of my customers contacted me about some survey that was sent to them via email.
Some replied, and I am sure some did not based on them obviously making it clear it was a bother or inconvenience for them to do so. I do not know how many of my customers actually replied, and based on some of the tones I wouldn't doubt they will never buy from me again thanks to the privacy issue being violated.
Either way, it is clear that these sales occurred, and these are "real" people.
Here are the facts re-capped:
1. Herbalife demanded receipts for sales I made for the previously mentioned time period. This is within their right.
2. The sales receipts were provided. Pages and pages of receipts for the time period.
3. Herbalife claimed their retail sale receipt policy was not met because a receipt was not provided for every single customer.
4. IT was proven that policy WAS met based on the verbiage of the policy.
5. Herbalife changed their mind now claiming because the receipts lacked a "personal phone number", and, that the receipts still do not comply. The receipts containing detailed information (first name, last name, specific product ordered, price paid, and personal email address of that customer)
Thus, we are in the same position again. Herbalife makes it appear they are helpful, or that the issue "is complex" because it paints the appropriate picture to someone reviewing a public complaint. This is misleading entirely.
The issue is not even remotely complex, and Herbalife is just back-peddling rather than just admitting they were wrong including, at a minimum, acknowledging the inquiry has been resolved. Any reasonable person could figure out these sales happened.
This company routinely treats people in this fashion. You can review many other BBB complaints, and identify a trend including many other independent sites reviewing this business with their shady business practices.